In The Spotlight

Barack Obama's relative success in raising campaign funds from small donors during the 2008 primary season is well known. Not as well known is that Obama raised an even higher percentage from donors of $200 or less during the general election.

Minnesota, like many states, is suffering through a budget shortfall prompted by the country's larger economic woes. To address the problem Gov. Tim Pawlenty last month announced $2.7 billion in "unallotments" beginning July 1 and continuing for two years.

The presidential candidates of 2007 raised and spent record amounts in the second quarter of 2007, according to the Campaign Finance Institute's analysis of campaign disclosure reports filed July 15 with the Federal Election Commission. Here are a few of the more interesting facts that leap on first inspection.

The attached three tables provide CFI's latest analysis of 2004 presidential fundraising through July 31st. Some key points:
Totals: Total fundraising continues to soar. As of July 31, 2004 presidential candidates had receipts of $650 million, 88% more than the $345 million candidates raised by a comparable date in 2000.

Fifteen of twenty-eight newly revealed $100,000+ donors to the 2004 Democratic convention were $100,000+ soft money contributors to the Democratic party in either 2000 or 2002. The last minute disclosure this week by the Boston Host Committee of more than a quarter of its large donors raises the number of such donors who made major soft money donations to the Democratic Party in the 2000 or 2002 elections from 20 to 35. Table 1 provides a complete list of major host committee donors who have made large soft money contributions to the Democrats.

The 2004 presidential campaign has become the most expensive such contest ever. According to the latest Federal Election Commission reports, total Democratic and Republican receipts amounted to $589 million at the end of June -- a 74% increase over the $339 million raised at the same time in 2000. Interestingly, the Democratic presidential field has raised more than Republican President George Bush: $361 million vs. $228 million.

TOTALS: Total fundraising continues to soar. As of May 30, the 2004 presidential candidates had receipts of $537 million, which is 62% more than the $331 million candidates raised by a comparable date in 2000. [See Table 1.]

The monthly presidential campaign disclosure reports filed May 20 by President George W. Bush and Democratic Senator John Kerry say on their respective front pages that they are reports of the two candidates' pre-nomination campaigns. But from the reports' contents, it is clear that the candidates have been raising and spending unprecedented amounts for the early phases of a general election campaign that began the day after the Super Tuesday primaries of March 2.

George W. Bush and John Kerry both have turned strongly toward small donors as they begin their final push for financial support. During March, President Bush, who had previously raised just 17% of his contributions from less than $200 donations (see CFI press release March 24, 2004), received 39% of his total from small contributions. In dollar terms, he raised twice as much in under $200 contributions in March as he did in February. In fact, President Bush raised almost half as much in small contributions in March as Howard Dean did in all of 2003.

Individual contributions to major party presidential candidates exploded from $184 million for the 2000 primaries to $316 million in 2004. Of this $132 million increase, $74 million (or 55%) came in amounts of $1,001 or more. (The new campaign finance law raised the amount an individual can give to a federal candidate from $1,000 to $2000). Another $14 million of the increase came from the growing number of straight $1,000 donors – a total of $88 million in new large donor money in 2004.

Year-end financial records filed with the Federal Election Commission on January 31 show the important role public funding played in preserving a choice for the voters in the Iowa caucuses of January 19 and New Hampshire primary of January 27.

With the Republican President and two major Democratic presidential candidates rejecting, or thinking of rejecting, public financing for their primary campaigns, the post-Watergate system of financing presidential nominations is in grave jeopardy. But after a year of study, a blue ribbon Campaign Finance Institute Task Force has concluded that the system should be saved and improved.